G.R. No. 176703 - Municipality of Cainta vs. Pasig City

Petitioner Uniwide Sales Warehouse Club, Inc. (Uniwide) operated business on parcels of land covered by TCT Nos. 72983, 74003, and PT-74468 (subject properties) issued by the Registry of Deeds of Pasig City, indicating location in Pasig.
Uniwide obtained building and Mayor’s permits from Pasig and paid taxes therefrom 1989 to 1996.

From 1997 onward, Uniwide ceased paying taxes to Pasig and instead paid to Municipality of Cainta (Cainta), which claimed jurisdiction over the same properties.
Pasig filed a case for collection of business taxes, fees, and other charges for fiscal year 1997 against Uniwide before the RTC-Pasig.
Uniwide filed a third-party complaint against Cainta for reimbursement of taxes paid to it if liable to Pasig.

Prior to the tax case, Cainta initiated a boundary dispute petition against Pasig pending before RTC-Antipolo, covering the same parcels contested in the tax case.
Cainta moved to dismiss or suspend the tax case on grounds of litis pendentia (pending boundary case), forum shopping, and existence of a prejudicial question. These were denied by RTC-Pasig and later by the CA, which also dismissed Cainta’s petition for certiorari.

RTC-Pasig ruled that the location in the TCTs controlling titles was conclusive and thereby recognized Pasig’s jurisdiction for tax collection, ordering Uniwide to pay taxes to Pasig.
The court rejected Cainta’s claims and held that the boundary dispute did not affect the tax case.
The RTC also ordered Cainta to reimburse Uniwide for taxes paid, citing unjust enrichment.
Attorney’s fees amounting to P500,000 each were awarded against Uniwide and Cainta, respectively.

The CA upheld RTC ruling with modification, reducing attorney’s fees awards to P100,000 each.
Subsequent motions for reconsideration by both parties were denied.

Cainta challenges the CA decision on multiple grounds including dismissal of litis pendentia and forum shopping, ruling on jurisdiction based on TCT, and imposition of tax payment liability on Uniwide.
Uniwide challenges the CA decision for not ordering reimbursement by Cainta directly to Pasig, and for attorney’s fees award.

Whether RTC-Pasig and the CA were correct in upholding the indefeasibility of the Torrens titles indicating Pasig jurisdiction over the subject properties despite the pending boundary dispute with Cainta; and whether the taxes for 1997 onward must be paid to Pasig.
Whether the tax collection case should have been dismissed, stayed, or suspended due to litis pendentia, forum shopping, or existence of prejudicial question given the pending boundary dispute litigation and certiorari petition.
Whether the award of attorney’s fees was proper under the circumstances.
Whether Uniwide is liable to pay real estate taxes in addition to business taxes to Pasig.
Whether Cainta must reimburse Uniwide for taxes paid and the mechanism of settlement between municipalities.